Question
Which of the following factors is NOT considered a major
challenge for the Indian economy in achieving sustained high economic growth?Solution
The demographic dividend is a period of economic growth that can occur when a country's working-age population (15-64 years) is larger than the non-working-age population (below 15 and above 64 years). This situation allows for higher productivity and increased savings, potentially leading to economic growth. In the context of India, the demographic dividend has been considered an opportunity rather than a challenge for the economy, as it provides a potential workforce and consumer base. The major challenges for the Indian economy are income inequality, which hampers inclusive growth; infrastructure bottlenecks, which limit productivity and efficiency; and external debt, which can impose financial burdens on the economy.
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